Budget 2022: Reactions from the property sector

Real Estate and Housing Developers’ Association (Rehda) Malaysia president Datuk Soam Heng Choon

Datuk Soam Heng Choon, President, Real Estate & Housing Developers’ Association Malaysia (Rehda)

Rehda is appreciative that the Government has taken into account our proposal to abolish the RPGT on homes disposed of on the sixth year onwards by Malaysians and permanent residents in the country.

The RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, we welcome the Government’s move for the removal.

We hope that this measure will help invigorate our property market to make it more resilient and eventually translate into a positive multiplier effect on the economy.

Additionally, the Government’s sentiment on the necessity of homes for all individuals especially the B40 is echoed within the Association. The further allocation of RM1.5bil to continue with housing programmes such as development of Rumah Mesra Rakyat and maintenance of the public housing units, is a step in the right direction.

Similarly, the RM2bil guarantees given to banks through the Guaranteed Credit Housing Scheme to assist those in the gig economy and alike, with the ability to pay but without income statement is another welcome move. This will hopefully encourage more from the group towards home purchase as they now have easier access to home financing.

S P Setia Bhd president & chief executive officer Datuk Choong Kai Wai

Datuk Choong Kai Wai, President and CEO, S P Setia Bhd

We appreciate the government’s initiative to provide a guarantee of up to RM2bil to banks under the Housing Credit Guarantee Scheme to help those who can repay the mortgage loan but have no proof of fixed income to get approval for said loans. This will help those who are in this predicament to purchase their own homes.

Although six years holding is relatively long, we hope the removal of the RPGT for property sales after the sixth year will help to spur the sub-sale market by increasing property transactions and will indirectly help invigorate the supply chain and rejuvenate the property industry.

We had hoped that the government would consider reducing individual income tax rates, especially for those who are affected by the MCO which was not tabled. However, we are heartened to see one-off exemptions provided to help those in need.

Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum

Tan Sri Leong Hoy Kum, founder and group managing director, Mah Sing Group Bhd

We foresee that the property market will benefit from the newly announced measures such as the allocation of RM2bil guarantee through the Housing Credit Guarantee Scheme to facilitate loans for those without proof of steady income as well as the real property gains tax (RPGT) waiver for property disposed from the sixth year and above.

This would be a timely catalyst in expediting the recovery of the property industry in line with the general consensus of expecting 2022 to be a better year for Malaysia.

With the government taking the important steps in steering the direction, we believe that all industry players and stakeholders will work together to ensure that the incentives will ultimately benefit the home buyers and propel the property market in Malaysia.